Chinese Enterprises Turn To Countries And Regions Where Labor Costs Are Lower.

In sports brands, personalization and customization have become a trend in the future.

Nike, Adidas, New Balance, and other brands have launched customized services, consumers can choose their own shoes, patterns, colors and even materials. Their sportswear is also gradually opening up, and more and more varieties allow consumers to design "unique products".

Do you want your sneakers to be more comfortable? Apart from the personalized appearance, Adidas and Nike are planning to customize sneakers for different consumers.

In the past, only stars and celebrities could enjoy customized "privileges".

If you want to promote customized services, this is obviously different from the pipeline system of another mode of production.

The production volume of each inventory unit (SKU) will be smaller.

More than 74% of Adidas's sales now come from new products launched in 1 years.

Traditional labor-intensive factories are no longer suited to such a rapidly changing market demand.

All these factors will affect the decision of the company, but anyway, we hope to see the upgrading of technology made in China, the upgrading of word of mouth, and the upgrading of voice.

This is like 1970s, when Nike's shoe factories moved from Japan to Korea and Taiwan, and the 1980 year was gradually pferred to mainland China.

Cost sensitive

Kimono industry always flows to areas where labor costs are relatively low.

Now, after the cost of production in China has increased, some of them have moved to Southeast Asia, and some have moved to African countries such as Ethiopia.

Huajian is an OEM shoemaker of Jiu Xi (Nine West) and Guess.

The company started a factory of about 3500 people around Ethiopia in January 2012.

The monthly wages of workers here are around 40 dollars, less than 1/10 of the average wage of Chinese workers.

Mentioned above

It decided to expand its operations in Southeast Asian countries such as Vietnam and Malaysia.

They are shifting their trousers orders from China to Malaysia, but maintaining the production of more complex shirts in Chinese factories.

In fact, the shift of middle and low end manufacturing industry has long started.

Around 2012, Indonesia surpassed China as Adidas's largest producer in the world.

According to the economist, the average labor cost in China's manufacturing sector is 2014 US dollars per hour in the year of 3.27, two higher than Vietnam, and 1/4 higher than that in Malaysia.

The factories in the food industry migrate from the eastern coastal areas (including Zhejiang, Jiangsu, Fujian and Guangdong) to the inland and western regions.

The cost of labor or construction costs of these places is lower than that of the economically developed eastern coastal areas.

At the same time, this will also help these foreign food brands enter the inland market and compete well with local brands.

But it is worth noting that the rise in labor costs does not mean closing factories is the right choice.

Because the formation of a manufacturing center means matching maturity (for example, in a morning in Huaqiang North of Shenzhen, all mobile phone accessories can be combined to produce a new brand of Shanzhai mobile phone), which means that the qualified labor market is mature, which means that the supply of funds is adequate, which means that the supply and development of these non manufacturing labor force is adequate, which means that the ability to upgrade is stronger.